Mako Mining: Operating One Of The World's Highest Grade Open-Pit Mines

Mako Mining, leveraging high-grade ore from its San Albino Mine (averaging 7.1 g/t in Q1 '25), is funding regional exploration and inorganic growth, including the acquisition of the Moss Mine in Arizona for approximately $2 million. With optimization at Moss, which historically produced 30,000 ounces annually, Mako aims to support further growth with the Eagle Mountain Project in Guyana, potentially achieving impressive growth fully funded by existing operations.

Analysis

Mako Mining is strategically leveraging its San Albino Mine in Nicaragua, distinguished by its high-grade open-pit characteristics with a Q1 '25 average milled grade of 7.1 g/t, to generate substantial free cash flow. This financial strength underpins the company's dual strategy of funding regional exploration and pursuing inorganic growth, such as the acquisition of the Moss Mine in Arizona. The Moss Mine, secured from a bankruptcy proceeding for approximately $2.0 million in net cash and with a historical annual production of circa 30,000 ounces, is slated for operational optimization. Successful optimization will establish a second producing asset, intended to support the advancement of the Eagle Mountain Project in Guyana. Mako Mining's operational model, focused on high-grade, shallow open-pit mining, uniquely positions it for potentially impressive, self-funded growth in the foreseeable future.

Key Decisions for Investors

• Investors should monitor key operational milestones, particularly the successful optimization of the Moss Mine and the development progress of the Eagle Mountain Project, which are critical to realizing Mako's planned production growth.
• The company's capacity to internally fund its expansion projects from cash flows generated by the high-grade San Albino mine is a significant positive, potentially mitigating shareholder dilution and enhancing return on capital.
• Consider exposure given Mako's strategy of aggressive growth through both organic development and opportunistic acquisitions, while remaining cognizant of execution risks inherent in multi-asset, multi-jurisdictional mining operations despite the current optimistic outlook.